Measures proposed to prop up housing sector

The Government has announced a slew of measures related to the property sector. While the real property gains tax (RPGT) was uppermost on the minds of both developers, consultants and property buyers, Prime Minister Datuk Seri Najib Tun Razak also proposed other measures to keep the momentum going for the sector.

Under the My First Home Scheme (MFHS) announced earlier this year, Najib proposed that the cap of houses for young working adults of aged 18 to 35 be raised from RM220,000 to RM400,000.

Najib, who is also the Finance Minister, also promoted the 1Malaysia People's Housing (PR1MA) scheme. While the MFHS is for those with a monthly salary of RM3,000 and below, the PR1MA scheme also comes under the broad category of affordable social housing.

“PR1MA will be the sole agency to develop and maintain affordable and quality houses, specifically for the middle-income group. It will be the developer for projects on land owned by the Government,” he said.

Several plots of government-owned land around Sungai Besi and Sungai Buloh will be used for this purpose. The Government will also identify areas in the vicinity of MRT, LRT and other public transport system to be developed by PR1MA for housing projects.

“PR1MA also welcomes the cooperation with the private sector to develop similar projects. In this respect, several private developers responded to the Government's call to provide affordable and quality housing. PR1MA will play a main role in ensuring that the distribution of the housing units be transparent and fair through an open balloting system,” he said.

Although much has been said about the build-and-sell concept, Najib brought this up once again in the budget.

To protect buyers from delay and abandoned project, the Government will encourage the construction of more houses using the build-then-sell concept.

Real Estate and Housing Developers Association Malaysia president Datuk Seri Michael Yam and Rehda national council member and branch chairman for Federal Territory N.K. Tong said the measures announced in the budget proposals encouraged homeownership among the poor and young working adults but discouraged speculation.

Yam said the slew of measures to promote ownership and to spearhead investment was heartening and showed that the Government was serious in keeping the healthy property market on an even keel.

“The measures announced is in line with the Economic Transformation Programme (ETP). Under the ETP, the Government wants to raise the population of the Greater KL/Klang Valley from the current 6 million to 10 million. In order to do that, there is a need for housing,” Tong said.

“It will be difficult for private land owners to provide land for social housing in the city, or close to the city. It is good that the Government is providing land for this cause and, at the same time, having them located near the proposed new public rail transport.

“In this respect I would said that the budget is two-prong when it comes to home ownership helping people to have a roof over their heads, and to save for their future.”

Yam said the slew of measures to promote ownership and to spearhead investment was heartening and showed that the Government was serious in keeping the healthy property market on an even keel. - By The Star